California-Based Oracle to Establish Batam Data Center with DayOne

Oracle Corporation has taken a major step in expanding its cloud operations across Southeast Asia by entering into a partnership with DayOne Data Centers to establish a new Oracle Batam data center in Indonesia. The company will lease facilities at the Nongsa Digital Park on Batam Island, positioning itself as the sole anchor tenant at a site capable of supporting over 120 megawatts of power capacity.

This move follows earlier discussions tracing back to March, when Oracle began evaluating Batam for its strategic potential as a free trade zone near Singapore and Malaysia. Recently Oracle’s internal documentation confirms the, signifying activation of its cloud region in the country.

Why Batam Is Critical To Oracle’s Southeast Asia Cloud Strategy

Oracle’s decision reflects Batam’s strategic value:

• Located in Nongsa Digital Park, Batam benefits from free trade status, competitive land rates, and proximity to Singapore and Malaysia—key regional cloud markets.
• DayOne has already secured financing totaling IDR 6.7 trillion (~$412 million) from DBS and UOB to build a triple‑campus data center in Batam. The campus will deliver 72 MW capacity by end‑2025, representing about 5% of Indonesia’s projected 1.41‑GW data center capacity by 2029.
• Oracle, in leasing DayOne’s plots, becomes the exclusive major occupant, anchoring future capacity and forging early entry into the Indonesian market.

Strategic Benefits and Technological Implications

Cloud Presence and Compliance

By leasing infrastructure rather than building its own, Oracle accelerates its Indonesia expansion while leveraging DayOne’s regional expertise. The is officially recognized within Oracle’s global public cloud infrastructure, joining its existing APAC portfolio, highlighting rapid scaling of OCI offerings in Southeast Asia.

Power and Connectivity

Nongsa Digital Park hosts multiple subsea cable landings, 12 currently active, with more under development, which provide high-speed connectivity across ASEAN. This connectivity is vital for cloud latency-sensitive services, AI workloads, and enterprise-grade applications.

Impact on Indonesia’s Digital Economy and Policy

Boosting National Cloud Infrastructure

The Oracle-DayOne collaboration strengthens Indonesia’s datapath to becoming a regional cloud hub. Indonesia’s Government Investment Authority (INA), a co-developer of the DayOne campus, made its first foray into data infrastructure investment to support these strategic national goals.

Supporting Cloud and AI Expansion

This infrastructure deployment aligns with rising regional demand for cloud services, AI, and big data processing. DayOne’s bank funding, largest in rupiah to date, empowers rapid completion of the project by end-2025. Once operational, the site will facilitate enterprise-scale deployments, edge node services, and sovereign cloud access for both public and private sectors .

Challenges and Future Outlook

Market Competition

Oracle is entering a crowded field dominated by Google Cloud, AWS, Microsoft Azure, Huawei, and Tencent, all with growing presence in Jakarta or West Java. Oracle’s entry into Batam marks its first Indonesian region, giving it a localized footprint and potential competitive edge .

Regulatory and Infrastructure Alignment

As part of policy coordination, the Indonesian government must continue aligning licensing, data sovereignty, and infrastructure planning to ensure seamless cloud integration and incentivize foreign cloud vendors.

What Lies Ahead for Oracle and Indonesia

• Cloud Region Growth: Oracle may develop additional availability domains or satellite nodes from Batam outward to Java or Kalimantan.
• Cross-Border Cloud Connectivity: Proximity to Singapore may enable Oracle to serve dual-market demands efficiently.
• AI and Enterprise Services: With robust regional cloud infrastructure, Indonesia can host AI workloads, startups, fintech services, and big data operations domestically.

Oracle’s bold expansion into Batam positions it as a key player in ASEAN’s cloud race, offering Indonesia both digital sovereignty and global compatibility.